I honestly don’t understand how splitting Netflix into a streaming service and a DVD delivery service is productive towards Netflix’s end goals. It fails to assuage the people who are now pissed off that they have to pay for both. I mean, it was always going to be the case that Netflix would have to adapt or die, and they knew they would probably have to drop their DVD service eventually. But for now, the things that keep people with Netflix (name brand recognition, Netflix’s excellent recommendation/ratings engine, widest selection) will be each be hurt by the split. There will be a competing service, with a more cumbersome rating/recommendation system, and much more limited selection in the streaming section.

I like Netflix’s service. It has kept me from pirating a movie as long as I’ve had it, and I’ll still keep both the streaming and the DVD service. But I wonder how long Netflix will keep subscribers like me.

2 Responses

Agreed. My house subscribes both to its disc service (seldom used) and its streaming (frequently used). I used to think Netflix had it made, that they would be to streaming video services what Apple’s iPod is to portable mp3 players, for example. But now I am beginning to wonder. Hulu Plus or Amazon Prime might be able to carve a niche by offering superior TV show steaming than Netflix. And if that happens, Netflix will either need to offer a truly expansive movie selection for streaming, or else it really could be in trouble.